Nature and levels of

Planning and types of

plans
ORGANIZATION AND MANAGEMENT
Learning competency

Discuss the nature and levels of planning

and types of plans
Objectives:

After going through this module, you are expected to:

 1. discuss the nature of planning;
 2. compare and contrast the different types of plans;
 3. describe planning at different levels in the firm;
It is the process that involves the setting of organization’s
goals, establishing strategies for accomplishing those goals,
and developing plans of action or means that managers
intend to use to achieve organizational goals.
a. Directing
b. Organizing
c. Planning
d. Staffing
Planning
 isthe first management function and a very essential
component of management.

 Itis the process that involves the setting of organization’s

goals, establishing strategies for accomplishing those
goals, and developing plans of action or means that
managers intend to use to achieve organizational goals.
It refers to the completeness of planning coverage.
a. Comprehensiveness
b. Frequency
c. Specificity
d. Strategy
Comprehensiveness
 refers to the completeness of planning coverage; for
example: it may start from plans that cover the entire
organization, called strategic plans, up to operational
plans that apply to a particular operational area only. The
more comprehensive the plan is, the better, as this could
completely guide both the employer and employee toward
the fast achievement of company goals.
It refers to the number of times or instances a plan
may be used.
a. Comprehensiveness
b. Frequency
c. Specificity
d. Strategy
Frequency of use

 refersto the number of times or instances a plan may be

used. For example, strategic plans have single use, while
operational plans are usually standing or are used
frequently or for several times.
These are plans that cover one year or less; such plans must
lead toward the attainment of long-term goals and are the
responsibility of the unit/department heads.
a. Operational plans
b. Short-term plans
c. Single-use plans
d. Strategic plans
Short-term plans

 plansthat cover one year or less; such plans must lead

toward the attainment of long-term goals and are the
responsibility of the unit/department heads.
5. These are plans that apply to a particular unit area
only.
a. Operational plans
b. Short-term plans
c. Single-use plans
d. Strategic plans
Operational plans

 plans that apply to a particular unit area only; their scope

is narrow; achievement of company goals may not be
achieved if operational plans are not clear.
Importance of Planning

 Planning provides direction to all of the organization’s human

resources – both managers as well as employees.
If they know what their firm or their work unit is trying to
achieve and what activities they should engage in to be able to
contribute to the achievement of the firm’s set vision, mission,
goals, and objectives, they would coordinate their actions and
collaborate well with one another.
Importance of Planning

 Planning is important because it reduces uncertainty; it

compels managers to consider future events that may
affect their company. Anticipating changes and their
impact will help managers and other workers to react to
such changes appropriately.
Importance of Planning

 Minimizing of wastes will result if there is proper

coordination of activities due to planning; negative
practices, ineffectiveness, and inefficiencies could be
easily detected and can be corrected or eliminated.
 Establishing goals and standards during planning may be
used for controlling, another necessary managerial
function.
Planning and Its relationship to Individual and
Organizational Performance
 Itis safer to say that relationship between planning and
performance is mainly due to association of systematic
planning with the excellent financial status of the
organization and higher return of investments, higher
income, and profit that could be traced to the excellent
performance of its human resources.
Goals vs Plans

Goals are the targets or desired ends that management wants

to reach, while plans are the actions or means that
administrators/managers intend to use to achieve
organizational goals. In short, goals serve as the foundation
of planning. Goals precede plans because knowing the
desired targets is a must before establishing plans for
reaching them.
Types of Plans

Comprehensiveness
 A plan may be long-term or covering more than three
years, or short-term, covering one year or less. Top-level
management usually sets the long-range plans, while
lower-level management focuses on short-term goals.
Types of Plans

Specificity
 refers to very detailed, clearly defined plans wherein
objectives are clearly stated and could easily be
understood. Simple language must be used in order to
facilitate understanding of the plan.
Types of Plans

Frequency of use
 refers to the number of times or instances a plan may be used.
For example, strategic plans have single use, while operational plans
are usually standing or are used frequently or for several times.
Referring to set plans is often necessary to ensure that all plans are
carried out, thus, hastening the achievement of the organization’s
goals. Managers meet many planning challenges as they go about
their tasks and direct their company’s affairs. In some organizations,
the planning environment is steady, but in others, it is dynamic, so,
different types of plans are made to meet organizational needs.
Different Types of Planning

Strategic plans – plans that establish the organization’s

overall goals and apply to the entire firm, they are broad in
scope and are the responsibility to the CEO, president, and
general manager of the company.
Operational plans – plans that apply to a particular unit area
only; their scope is narrow; achievement of company goals
may not be achieved if operational plans are not clear.
Different Types of Planning
Long-term plans – plans that go beyond three years;
everyone must understand the organization’s long-term plans
to avoid confusion that may divert the organization members’
attention.
Short-term plans – plans that cover one year or less; such
plans must lead toward the attainment of long-term goals and
are the responsibility of the unit/department heads.
Different Types of Planning
Directional plans – plans that are flexible or give general
guideline only; although flexible and general, these plans
must still be related to the strategic plans.
Specific plans – plans that are clearly stated and which have
no room for interpretation; language used must be very
understandable.
Different Types of Planning

Single-use plans – plans used or stated once only as this

applies to the entire organization; refer to the operational
plans of the firm.
Standing plans – plans that are ongoing; provide guidance
for different activities done repeatedly; refer to the identified
activities of operational plans.
Planning at Different Levels in the Firm

Top-level Management Planning

(Strategic Planning)
 Top level managers are responsible for the organization’s strategic
planning which involves making decisions about the organization’s
long-term goals and strategies.
 Strategic planning starts with defining the organization’s
goals/objectives, the major targets related to the maintenance of the
organization’s stability, and its organizational culture, values, and
growth improving its productivity, profitability, effectiveness, and
efficiency, among others.
Planning at Different Levels in the Firm

Middle-level Management Planning

(Tactical Planning)
 Tactical planning refers to a set or procedures for changing or
transforming broad strategic goals and plans into specific goals
and plans that are applicable and needed in one unit/portion of
the organization. It is focused on major actions that must be
done by a unit in order to contribute its share for the
achievement of the strategic plan.
Planning at Different Levels in the Firm

Frontline/Lower-level Management Planning

(Operational Planning)
 Operational planning involves identifying the specific
procedures and processes required at the lower levels of
the organization. This also involves routine tasks or tasks
repeatedly done by the organization’s lower level units.
Reminders:

Be the best that you can be! Set your

goals! Plan your future! Keep safe and
God bless everyone!!!